Alstria office REIT has announced it is selling seven office assets for EUR 93.4 mln in the largest office portfolio deal in Germany so far this year. The identity of the buyer was not disclosed.
Alstria office REIT has announced it is selling seven office assets for EUR 93.4 mln in the largest office portfolio deal in Germany so far this year. The identity of the buyer was not disclosed.
Alstria, an internally managed Real Estate Investment Trust (REIT) which is solely focused on acquiring, owning and managing office real estate in Germany, said the portfolio has a total lettable area of approximately 48,000 m2. The properties are located in secondary German cities and are let on an average remaining lease length of eight years.
The total sales price, Alstria said, reflected the end-2008 valuation and the current IFRS book value of the assets. The portfolio, that has an occupancy rate of 99%, generates an overall annual rent of around EUR 6.4 mln which would reflect a buyer gross yield on cost of around 6.5%.
Alstria said the transaction would allow it to further reduce its syndicated loan due at the end of 2011 to EUR 784 mln from EUR 1.1 bn a year ago.
